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Valens Research

BLL - Embedded Expectations Analysis - 2019 01 02

Ball Corporation (BLL:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 24.8x Uniform P/E. However, at these levels, the market has somewhat bullish expectations for the firm, and management is confident about can consumption trends, large beverage growth, and their production operations

Specifically, management generated an excitement marker when saying that their business in Europe is more mature and more penetrated than North and Central America. Moreover, they are confident about market trends for can consumption, and growth in their large beverage can customers. They are also confident that declines in big beer categories in North America are not significant, and about their volume growth levels in Mexico. Additionally, they are confident about growth in their soft drink can category, and that they have not seen many line production disruptions in their metal business. Finally, they are confident about their corporate undistributed profit levels
Underlying
Ball Corporation

Ball supplies metal packaging to the beverage, personal care and household products industries. The company provides aerospace and other technologies and services. The company's main product line is aluminum beverage containers. The company also produces aerosol containers, extruded aluminum aerosol containers and aluminum slugs. The company's segments are: beverage packaging, North and Central America, beverage packaging, South America, and beverage packaging, Europe, all of which are engaged in manufacturing and selling aluminum beverage containers; and aerospace, which manufactures and sells aerospace and other related products and provides services used in the defense, civil space and commercial space industries.

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Valens Research
Valens Research

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